Income Beginner: Introduction to Deposit Accounts

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The simplest kind of deposit account to set up and maintain is a _______.
Choose wisely. There is only one correct answer.
Passbook account. A passbook account is easy to start, offers immediate access to funds, and requires low minimum balances.
2.
Funds 'swept' from your asset management account are deposited into _______.
Choose wisely. There is only one correct answer.
A money market account. This lets unallocated funds earn a higher rate.
3.
Which of the following is a reason an investor might open a deposit account?
Choose wisely. There is only one correct answer.
All of the above. Investors open deposit accounts for all of these reasons.
4.
How much of your deposit account is insured by the FDIC or NCUA?
Choose wisely. There is only one correct answer.
$250,000 ($250,000 for retirement plan accounts). The FDIC or NCUA insures each depositor up to these limits.
5.
Because deposit accounts pay relatively low yields, investors have little need of them.
Choose wisely. There is only one correct answer.
False. Deposit accounts can be useful tools for accumulating investment capital, sheltering funds during market downturns, and maintaining a supply of liquid cash.